Managing agents are required 55 to submit periodic reports on the effect that RDS (e.g. hypothetical windstorms, earthquakes, terrorist attacks, fl oods, exploding oilrigs etc.) prescribed by Lloyd’s 56 would have on underwriting results. The maximum gross and net exposures to a single RDS are 75 per cent and 20 per cent of gross net premium respectively, but other factors, such as GNP allocated to the line of business, the level of capital, and the level of expected underlying profi tability in the

absence of major catastrophic events, and in other lines of business are also taken into account.